Explain five ways in which a contract of bailment may be discharged. (10 marks)November 2022

A contract of bailment is a legal agreement in which one party (the bailor) entrusts possession of property to another party (the bailee) for a specific purpose, such as storage, repair, or transportation. A contract of bailment may be discharged in several ways, including:

1. Performance: The contract of bailment is discharged when the bailee performs the task for which the property was entrusted to them, such as repairing a car or storing goods.
2. Return of property: The contract of bailment is discharged when the bailee returns the property to the bailor in the condition it was received, or in the condition agreed upon in the contract.
3. Mutual agreement: The contract of bailment may be discharged by mutual agreement between the bailor and the bailee, in which they both agree to terminate the contract and release each other from their obligations.
4. Expiration of time: The contract of bailment may be discharged if it is for a specific period of time, and that period has expired.
5. Destruction of the property: The contract of bailment may be discharged if the property is destroyed or lost through no fault of the bailee. In this case, the bailee will not be liable for the loss of the property.
6. Breach of contract: The contract of bailment may be discharged if either party breaches the terms of the contract, such as the bailee failing to take reasonable care of the property.
7. Insolvency of either party: The contract of bailment may be discharged if either the bailor or the bailee becomes insolvent or bankrupt.
8. Death of either party: The contract of bailment may be discharged if either the bailor or the bailee dies.
9. Force majeure: The contract of bailment may be discharged if the performance of the contract becomes impossible due to an event outside the control of the parties, such as a natural disaster.
10. Statute of limitation: The contract of bailment may be discharged if the claim is not brought to court within a specific period of time as provided by law.